Should American Well go ahead with its core product online care? Explain Why it should or should not. If yes, then how should it do it? American Well should go ahead with its core product Online Care because of the following reasons: a. Technology is one of the strengths they have harnessed in implementing Online Care and this can further serve to block competition in the future b. They had the first mover advantage and progress in this segment with maximum customer satisfaction will provide American Well the opportunity to become the definitive leader in Online Care c. No huge investment or hiring of resources will be required to continue the operations d. If they fail in this venture (their first and core product) none of their extensions would then have a potential to capture the market e. They had good financial support of many sophisticated and angel investors f. Managerial expertise of both Ido and Roy in handling this sector and their previous track record in this area is an advantage which they can leverage while marketing this product g. Market demand of such a product was huge as according to a survey of 2006, 74% of the respondents wanted such a service h. Value proposed to all the players with this service created a win-win situation for all and hence growth in this segment was inevitable. Health insurance companies could save $3.36 per patient per month (Exhibit 9) and patients too could exercise choice and convenience
According to Exhibit 11 (selected cities also shown above), Boston, Los Angeles and Washington DC has the highest average time new patients wait for appointment with family practice physicians (62, 58, 30 days respectively). This is a great opportunity for American Well to transfer this segment of people who still go for family practitioners to online health care segment by helping them to utilize their time efficiently and cater to their health needs immediately. Hence, National Roll-out Plan of its core product by starting off with these cities will be a great plan to progress in its core product and emerge as a leader in the near future.
Should American well go ahead with Team Edition? Explain why or why it shouldn’t. If yes, then how should it go about implementing the additional service? Based on our analysis, we feel Team Edition is the natural extension of the existing services of American Well. The service involves moving ahead the typical PCP and patient interaction over internet and involving the specialist in the online space as well without any additional costs. This key feature has the capability to serve as a differentiator for American Well as the market competition in the online healthcare space is high and hence differentiation is of utmost importance. For American Well, offering Team Edition is a good value proposition as it allows the company to add an additional service in its offerings at no substantial additional costs (the technology platform developed for the core service can be modified to include Team Edition as well). This results in business expansion and increased brand awareness Furthermore, issues pertaining to acceptance are negligible as customers are already well versed with the technology platform and comfortable with the same For its core customer segment of health insurance companies, the add on feature is highly beneficial majorly because of two reasons: First, additional cost savings for the companies would be substantial due to early detection of certain medical problems thereby reducing coverage for patients (as patients can immediately take the opinion of the specialists, it results in early detection and thereby reduces long term insurance coverage) Second, having Team Edition as an additional option for their insurance packages would place them as a much more attractive option for Employer groups/multinational corporations and institutions as the range of services offered are broader But, we have also observed...
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